Hi all,

The markets finished September on a pretty good note despite seasonal challenges, political uncertainty, a short port strike, strong labor data, and the escalating conflict in the Middle East. Most of the indexes posted gains for the week. The S&P hit its 42-year all-time high, and the DOW gained another 0.1%.

Meanwhile, the Chinese government decided it needed a huge round of stimulus to get its economy going again, and Chinese stocks rocketed higher on the news.

Notably, the 2-year treasury yield took a big jump this week on renewed concerns that inflation may start to tick up again due to higher oil prices, a strong economy, and the solid employment data we just got on Friday.

While we were marginally up this week, the buyers still seem a little exhausted. Earnings season starts later this week with DAL and JPM always in the lead. We need some catalyst to get the buyers back involved – we will see if the earnings releases will support these relatively high stock prices.

Recap Video

Watch the Recap on YouTube

Sectors in Play Last Week

1. Energy and Communication Services were big gainers this week.
2. Basic Materials and Real Estate were the sectors that lost the most for the week.

Key Levels for this Week

• DOW (42,353) – support 41,585 and resistance 42,630
• QQQ (487) – support 472 and resistance 494
• SPY (573) – support 562 and resistance 575
• IWM (220) – support 215 and resistance 225

What to Watch for this Week

• Monday – 3:00 Consumer Credit
• Tuesday – 8:30 US Trade Deficit 
• Wednesday – 10:00 Wholesale Inventories; 2:00 Release of Sept FOMC minutes
• Thursday –8:30 Jobless claims; CPI data
• Friday – 8:30 PPI data; 10:00 Consumer Sentiment

Earnings this week

• Monday – nada
• Tues – PG, PEP pre and WM post
• Wed – nada
• Thurs – DAL, DPZ, HPE pre 
• Friday – JPM, WFC, BLK pre

Positions and Trades Last Week

• CMG – Long. Looking for a break higher
• FXI – long based on last week’s watchlist but sold most end of the week.
• UVXY – still long from two weeks ago but sold most.

Tracking for Potential Trades

• ABCL – potential bottoming action at $2.40 with the presentation in November on their technology.
• CRWD – potential for a move higher if it can break above $300
• GOOGL – watch for a break out above $170.
• META – potential for short put options play with $570 looking like solid support.
• OKLO – Flyer on Sam Altman uranium play. Could continue higher.
• SLV – watch for a breakout above $29.5.

 

Note: These are investments I am in or watching however, they may not be suitable for all investors. The author of this email is NOT an investment advisory service, a registered investment advisor, or a broker-dealer and I do NOT undertake to advise clients or recipients of this email on which securities they should buy or sell for themselves. This email is provided for information purposes only and traders should always consult with their licensed financial and tax advisors to determine the suitability of any investment.